The following data have been taken from the budget reports of Brandon company, a
ID: 2497359 • Letter: T
Question
The following data have been taken from the budget reports of Brandon company, a merchandising company.
Sixty percent of purchases are paid for in cash at the time of purchase, and 20% are paid for in each of the next two months. Purchases for the previous November and December were $230,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $300,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:
rev: 10_27_2011
$328,000
$280,000
$220,000
$354,000
The following data have been taken from the budget reports of Brandon company, a merchandising company.
Explanation / Answer
Answer : $354,000
The working notes for the above answer is as follow
Cash disbursements flow for the Aprill will be as follow
Particular Amount Purchase of apriil ( 220,000*60%) 132,000 Purchase of March (240,000 *20%) 48,000 Puchase of February(240,000 *20%) 48,000 Employee wages (380,000*10%) 38,000 Selling and admin Expenses (340,00 68,000 Interest expenses 20,000 Total 354,000Related Questions
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